Why Europe’s top asset manager expects U.S. stocks to outperform — and one reason is stock buybacks
published 29.07.2020 15:05
Europe’s largest asset manager, Amundi Asset Management, has produced research showing why U.S. stocks have outperformed the world, and why that outperformance may continue.
Admittedly written by two from its Boston office — Craig Sterling, its head of U.S. equity research, and Marco Pirondini, head of U.S. equities — Amundi made a distinction between the U.S. stock market, which is a play on many of the world’s most profitable companies, and the U.S. economy.
Uniquely, the pair supports the corporate culture of stock buybacks, which are far less prevalent outside the U.S. “A key advantage of share repurchases is that they enable the recycling of capital throughout the economy, so capital may end up in the most innovative hands and not trapped inside of less efficient, more mature companies,” Amundi says.
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